Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sale Question: Who Sets The Price For A Short Sale?

question markIn our Ask the Expert Section, we recently received a question from Paul, he asks, "I'm behind on the mortgage payment on my Knoxville home. I've tried to do a loan mod, but my request was denied. My lender suggested that I do a short sale on my Knoxville home. I don't want to owe my lender any more money than I have to, so I want to get the highest price possible. Who determines the price for a Knoxville short sale?" Short sales are no different than traditional real estate sales when it comes to setting the price. You'll hire a real estate agent and they'll provide you with a list of comparable homes that have sold in your area. Based on that information, you will set a price for your Knoxville home. The lender will play absolutely no role in setting the price for your home. Once an offer has been written on your Knoxville home, the offer, along with all of the other short sale documentation, will be submitted to the lender. At that point, the lender will take a look at what they will net from the sale of the home after closing costs, Realtor commissions, and any other fees associated with closing. At that point, the lender will either approve the sale, counter offer for a higher price, or deny the price all together. While they will not set the original price for the home, they can counter back for a higher price if the Broker's Price Opinion comes in high. Keep in mind though, an experience agent can help provide the proof if the lender asks for an unrealistic price. As far as owing anything to your lender after completing a short sale, that kind of all depends. In some cases, a lender will require a homeowner to sign a promissory note at closing to repay some of what is owed back. In majority of cases, we are able to negotiate that the lender waives their right to pursue the seller for anything after closing. Are you facing foreclosure on your Knoxville home? My team and I have helped many Knoxville homeowners avoid foreclosure. If you have questions about your situation, do not hesitate to contact us today. You can call Rick at 865-696-9002 or via email at [email protected]. All of our services are done at absolutely no cost to you.  

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